Nanophase Technologies (OTCMKTS:NANX – Get Rating) and Coty (NYSE:COTY – Get Rating) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.
Earnings and Valuation
This table compares Nanophase Technologies and Coty’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nanophase Technologies | $37.32 million | 1.92 | -$2.62 million | ($0.08) | -18.13 |
| Coty | $5.37 billion | 1.85 | $259.50 million | $0.20 | 58.10 |
Coty has higher revenue and earnings than Nanophase Technologies. Nanophase Technologies is trading at a lower price-to-earnings ratio than Coty, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nanophase Technologies | 0 | 0 | 0 | 0 | N/A |
| Coty | 0 | 5 | 6 | 0 | 2.55 |
Coty has a consensus target price of $12.44, indicating a potential upside of 7.04%. Given Coty’s higher possible upside, analysts clearly believe Coty is more favorable than Nanophase Technologies.
Profitability
This table compares Nanophase Technologies and Coty’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nanophase Technologies | -9.95% | -59.94% | -11.51% |
| Coty | 3.55% | 12.81% | 3.70% |
Volatility & Risk
Nanophase Technologies has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, Coty has a beta of 1.88, indicating that its stock price is 88% more volatile than the S&P 500.
Insider and Institutional Ownership
37.1% of Coty shares are held by institutional investors. 6.8% of Nanophase Technologies shares are held by insiders. Comparatively, 4.4% of Coty shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Coty beats Nanophase Technologies on 11 of the 13 factors compared between the two stocks.
About Nanophase Technologies
Nanophase Technologies Corporation provides engineered materials, formulation development, and commercial manufacturing with an integrated family of technologies in the United States. It offers surface engineered zinc oxide and titanium dioxide for sunscreens and personal care products; fully formulated cosmetics, sun care, and skin care under the Solésence brand name; and advanced material products, such as architectural coatings, industrial coatings, abrasion-resistant additives, plastics additives, medical diagnostics, and various surface finishing technologies applications. The company was incorporated in 1989 and is headquartered in Romeoville, Illinois.
About Coty
Coty, Inc. engages in the manufacture, market, sale, and distribution of branded beauty products. It operates through the following segments: Americas, EMEA, and Asia Pacific. The segments Americas, EMEA, and Asia Pacific focus on prestige fragrances, prestige skin care, prestige cosmetics, mass color cosmetics, mass fragrance, mass skin care and body care. The company was founded by Francois Coty in 1904 and is headquartered in New York, NY.
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